TFI International announces 2023 third quarter results

TFI

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TFI International announced its results for the third quarter ended September 30, 2023.

Financial Highlights:

  • Operating Income of $200.6m compares to $318.4m the same quarter last year, reflecting reduced freight volumes and non-recurring costs, including the prior year divestiture of CFI and the related gain, $5.6m and $75.7m, respectively, $5.5m of IT systems and related transition expenses in U.S. LTL, a $4.7m expense for the MTM of director share units, and $2.9m unfavourable currency translation impact relative to the same period last year
  • Net Income of $133.3m compared to $245.2m in Q3 2022, while adjusted net income1 of $136.0m compared to $181.2m because of the items described above
  • Diluted earnings per share (diluted “EPS”) of $1.54 compared to $2.72 in Q3 2022, while adjusted diluted EPS1 of $1.57 compared to $2.01
  • Net Cash from operating activities of $278.7m compares to $337.8m in Q3 2022 and free cash flow of $198.3m compares to $292.1m in Q3 2022
  • The Board of Directors approved a $0.40 quarterly dividend, an increase of 14%

“We executed well during this stretch of weaker demand as our team was able to quickly adapt to changing market conditions while further streamlining operations. As a result, we were able to post solid results including close to $280 million of net cash from operating activities. Looking ahead, we’re well positioned to capitalize on the eventual pick-up in demand given our efficient platform, our team’s focus on profitability and cash flow, and our solid financial foundation, which further benefitted from our post-quarter, half billion-dollar private placement. It’s this foundation that allows us to strategically allocate capital including eleven acquisitions this year, along with our share repurchases and our Board’s recently approved dividend increase.” says Alain Bédard, Chairman, President and Chief Executive Officer of TFI International.

In this quarter, the total revenue declined for all segments relative to the prior year period with decreases of 11% for Package and Courier, 19% for Less-Than-Truckload, 25% for Truckload, which is due to a $415.2m decrease from the divestiture of CFI, and 13% for Logistics. Operating income decreased by 18% for Package and Courier, 38% for Less-Than-Truckload, 37% for Truckload and 1% for Logistics as compared to the prior-year period. Truckload operating income in the prior year period included a $46.1m contribution from CFI.

Recently, TFI International acquired Vedder Transportation Group, a company that specializes in the tank truck transport of food grade liquids and dry bulk commodities.

Source: TFI International

 

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